Nice job. I am like your son in a way. I have had my license for 4 months and my thing is I had a disspute with a customer i had doing home improvement and went to court for larceny. Wasn't larceny at all and was dropped but shows on my record.Have another incident.wrong place,wrong time but be 5 yrs old same time as the "larceny" thing. Wish I had family in the biz so I could have a shot. He's very lucky. Tell'em to take it easy on your trucks! Ha Ha. Now If I wait a year and 4 months that will be 5 yrs old and should be able to finally start my driving career. Yeah. Can't wait. Best of luck 2 ya'll
Starting a trucking COMPANY worth it?
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I will say this for you, If you were able to buy just one truck, put a team on it sit at the house and dispatch you are good. I been in this business for over 15 years and am 2nd generation in the industry as a whole. My experience is it almost impossible to buy one truck put a team in it and sit at home and everybody makes money. You got to have some incredible contract to pull that off.
Not doubting you and I see you indicated your struggles. Most companies have started with one truck even some of the biggest out their started with just a few and built that into an empire. Prime started with a dump truck that was eventually traded for a reefer last i check was making a half billion per year with 3000 plus trucks on the road. Swift started out as a family business with a few trucks running between AZ and CA. Was not called swift then they purchased the Authority of the Swift Meat Packing Corp when it went wherever it went and rebranded themselves as swift.
There are many more but the bottom line is that one thing all these companies have in common is they did the work themselves and built from there none of them were able to buy one truck put a team on it and sit at home playing dispatcher.
I have my own authority and have purchased many trucks in my 17 year span out here even I cannot do that it takes me 3 tractors all running teams to cover ever single expense created from running. Pay myself and still cut a profit.
1. Driver pay
3. Maintenance i.e Tires, Shop and reserves
7. Dispatcher Pay (your Pay Check)
8. Factoring Expense (they take a percentage for floating you)
9. Fuel Card Fees
10. Communications, Internet, Load Boards, Carrier Depot etc
11. Profit Margin
I'm sure I missed some but you get the Point. How can 1 truck pay all this? 3 paychecks a profit and paying all expenses?
Like I said I can't doubt you just seams a little far fetched.
If not then with your 3 months to my 17 years you need to share your secret so we all can grow up to be like you.
Not trying to be funny just keeping it real !!!foldingorbits Thanks this.
I've been researching this since I got my CDL 5 years ago. I've been driving ever since, and still planning to go O/O someday.
From the research Ive done, if your planning to just have a single truck forever then your not going to get rich. My plan of attack is going to be run a single truck for the first couple years, take as little pay cheque as I can pay the bills with. Put everything else into the business. As startup costs and payments (hopefully) go away I add a truck and hire a driver. As soon as the bank accounts recover from that and cash flow becomes consistent on the second truck I add a 3rd truck and driver, again and again.
This is just my take on it, and my strategy so far. By year 10 I'd like to see myself with half dozen trucks and a small shop, where I become the mechanic and relief driver.
It sounds like a plan but you gotta really analyse your target market. Just look at the logistics scene in the US: http://www.statista.com/topics/1417/logistics-industry-in-the-us/
That's a lot of big competitors to worry about. Try and establish yourself somewhere you and your truck are going to end up busy. A friend of mine worked for a small trucking company in Ireland (sure quite a bit different to the US and in the middle of a financial crisis) and he's out of work - the building trade collapsed and his truck stopped moving. He's trying to get into the industry in Canada these days.
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